Deals are happening, but many are clunky, slow, and require extra effort to close. Both tenants and landlords are navigating a period of deep economic uncertainty—locally, nationally, and globally. It’s difficult to plan long-term when you’re not sure whether your niche manufacturing business, especially one tied to the wine industry, will grow, hold steady, or be pushed out entirely if market conditions deteriorate quickly.
This uncertainty is creating a fundamental disconnect in lease negotiations. Tenants are seeking shorter commitments—typically 1 to 2 years—with discounted rates and flexibility. Landlords, on the other hand, are pushing for 3- to 5-year deals that offer stability and reduce pricing risk in an unpredictable market.
Market comps are no longer reliable guideposts. Comps are useful when a market is stable, but in today’s environment, they often feel disconnected from the actual terms getting negotiated and signed.
Still, deals are happening. They just take more time, energy, education, patience, and creativity to bring the parties together. That’s the current reality. We’re in a challenging phase of the economic cycle, and everyone is feeling it.
But this period will pass.
The fog will lift. As market conditions stabilize, tenants and landlords will once again find common ground more easily—striking deals that work for both the short and long term.
Onward to a clearer, more active market in the days, weeks, and months ahead.
Written by: Patrick Gleeson, W Commercial
Patrick can be contacted at: pgleeson@wrealestate.net or 707.235.5766
